scholarly journals Offshoring of white-collar jobs: theory and evidence1

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Artur Klimek
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Logistic Model ◽  
Formal Model ◽  
White Collar ◽  
Business Services ◽  
Multinomial Logistic Model ◽  
Foreign Affiliates

Abstract Foreign direct investment (FDI) in advanced business services (ABSs), referred to here as the offshoring of white-collar jobs, has become one of the major developments in the operations of multinational corporations (MNCs). However, a specific theoretical approach to this phenomenon has not been adequately defined. In this article, we have two objectives. The first objective is to outline the key elements of the theoretical framework and introduce a simple formal model for business services within MNCs. The second objective is to verify the assumptions of the model in the empirical part. We use the sample of the largest European companies having foreign affiliates. Special attention is paid to Visegrád economies (i.e. Czech Republic, Hungary, Poland, and Slovakia) as host economies. We applied here a multinomial logistic model, which indicates the probability of having an ABS subsidiary taking into consideration the characteristics of MNCs.

scholarly journals Determinants of foreign direct investment in advanced business services

2020 ◽  
Vol 70 (3) ◽  
pp. 407-421
Author(s):  
Artur Klimek
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Negative Binomial ◽  
Negative Binomial Regression ◽  
The European Union ◽  
Skilled Workers ◽  
Business Services ◽  
Firm Level ◽  
Foreign Companies

AbstractThis paper is aimed at investigating determinants of recent flows of foreign direct investment (FDI) into advanced business services (ABS) in the European Union with the distinction between “old” (till 2004) and “new” member states (after 2004 extension). Special attention is put on the Visegrád countries. The factors affecting location decisions of multinational corporations were analysed at the national and regional level. The latter approach proved to be very effective due to the fact that foreign companies operating in ABS are highly unequally distributed across economies. Indeed, there are only few regions in economies attracting bulk of the operations in ABS.The research method applied in the paper is negative binomial regression, which measures the probability of occurrence of an ABS foreign firm in an economy or a region taking into consideration its characteristics. This research combines macroeconomic, regional and firm-level data. The explanatory variables are divided into two groups: demand and supply. The main conclusion is the high significance of the supply factors. In other words, foreign companies focus on locations offering large number of skilled workers at reasonable prices. The key recommendation for governments interested in attracting ABS type of investment is to focus on the quality of human capital.

scholarly journals Foreign Direct Investment in non-urban public transport in Visegrad Group (V4) countries

2018 ◽  
Vol 2018 (3) ◽  
pp. 8-20
Author(s):  
Zbigniew Taylor ◽  
Ariel Ciechański
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Public Transport ◽  
Direct Investment ◽  
Foreign Direct Investments ◽  
Comprehensive Overview ◽  
Urban Public Transport ◽  
Visegrad Group

The purpose of this study is to investigate the changes and draw generalizations relating to the processes of foreign direct investments (FDI) in the non-urban public transport in the countries of the Visegrad Group (Poland, Czech Republic, Slovakia and Hungary), after 1989. The processes observed lead mainly to the so-called brownfield investments and cover both bus operators, as well as rail carriers. The focus is placed on comprehensive overview of the activities of the largest investor (the German national railway DB) existing in all four countries of the V4 Group, and leading railway services in the most of the described countries.

scholarly journals DETERMINANTS OF FOREIGN DIRECT INVESTMENT IN THE VISEGRAD GROUP COUNTRIES AFTER THE EU ENLARGEMENT

2018 ◽  
Vol 24 (5) ◽  
pp. 1955-1978 ◽  
Author(s):  
Weihua Su ◽  
Dongcai Zhang ◽  
Chonghui Zhang ◽  
Josef Abrhám ◽  
Mihaela Simionescu ◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Czech Republic ◽  
Direct Investment ◽  
Labour Force ◽  
Eu Enlargement ◽  
The European Union ◽  
Macroeconomic Factors ◽  
Foreign Investors ◽  
Fdi Inflows ◽  
Visegrad Group

Considering the role of foreign direct investment (FDI) inflows in the sustainable development of a country, the main aim of this paper is to identify some macroeconomic factors that positively or negatively influence FDI in Visegrad group countries after the European Union (EU) enlargement in 2004. We employed two types of approaches in our analysis: i) time series and ii) panel data approach. According to the generalized ridge regressions estimated in Bayesian framework, the perceived corruption was a factor that influenced FDI in all the countries. In Poland, Czech Republic and Slovakia corruption came through as a serious obstacle for FDIs since 2005, but this was not the case for Hungary. Even if Hungary is perceived as a country with high influence, foreign investors seem no to care about this fact and are more interested in the quality of human resources and the possibility to increase exports. Our panel approach based on a panel ARDL model identified a significant relationship between FDI, corruption index and labour force with advanced education however this causality was only detected in the long run. According to the Granger causality in panel, the attraction of FDI inflows succeeded in generating changes in total tax rate, but the issues related to corruption were not reduced at an acceptable level for foreign investors in Poland, Slovakia, and the Czech Republic.

Regime Type and Foreign Direct Investment: A Transaction Cost Economics Approach to the Debate

2017 ◽  
Author(s):  
Austin P. Johnson ◽  
Quan Li
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Direct Investment ◽  
Multinational Firms ◽  
Joint Venture ◽  
Transaction Cost Economics ◽  
International Political Economy ◽  
Regime Type ◽  
Ownership Type ◽  
Multiple Dimensions

A debate exists in international political economy on the relationship between regime type and foreign direct investment (FDI). The central point of contention focuses on whether multinational firms generally prefer to pursue business ventures in more democratic or autocratic countries. A considerable amount of theory has been developed on this topic; however, the arguments in previous studies lack consistency, and researchers have produced mixed empirical findings. A fundamental weakness in this literature is that while FDI has largely been treated conceptually as a homogeneous aggregate, in reality, it features divergent characteristics on multiple dimensions. Three possible dimensions that FDI can be decomposed on are: greenfield vs. brownfield, ownership type (wholly owned vs. joint venture), and horizontal vs. vertical. The most relevant dimensions to the problem at hand are: greenfield vs. brownfield, and horizontal vs. vertical. Five propositions, based on the notion of asset specificity, other investment attributes, and host nation domestic factors, are derived to predict how regime type might affect four types of FDI: vertical-greenfield; vertical-brownfield; horizontal-greenfield; and horizontal-brownfield. Depending on the type of FDI, multinational corporations may have no regime preference, an autocratic preference, or a democratic preference. This research contributes to empirical international relations theory by providing a useful example on how to resolve a scholarly debate, theoretically, and by laying out testable propositions for future empirical research.

scholarly journals Byways and Highways of Direct Investment: China and the Offshore World

2010 ◽  
Vol 39 (4) ◽  
pp. 111-142 ◽  
Author(s):  
William Vlcek
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Comparative Studies ◽  
Direct Investment ◽  
Pacific Islands ◽  
Developing Economies ◽  
Net Worth ◽  
Domestic Capital ◽  
Financial Governance ◽  
Financial Liberalisation

This paper examines a lacuna in the literature on foreign direct investment (FDI) flows to China: the absence of analysis for the prominent location of small Caribbean and Pacific islands as leading sources of FDI. An indeterminate amount of domestic capital is embedded in these FDI flows, which distorts comparative studies on FDI in developing economies between China and other states. Direct investment from China has also increased in recent years and offshore financial centres (OFCs) often serve as the initial destinations. This paper excavates the rationales behind the presence of OFCs and suggests that Chinese actors will emulate the practices of developed state multinational corporations and high-net-worth individuals. The implications of these investment practices are outlined along with possible trajectories for their impact on the process of financial liberalisation in China. Consequently, it encourages increased Chinese participation in the development of global financial governance.

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